AINS 101 Exam Prep Questions and Answers 100% Pass

AINS 101 Exam Prep Questions and Answers 100% Pass Loss exposure any condition or situation that presents a possibility of loss, whether or not an actual loss occurs Premium the price of the insurance coverage provided for a specified period Indemnify to restore a party who has sustained a loss to the same financial position that party held before the loss occurred Insured any person or organization who is insured under an insurance policy Property-casualty insurance one of the two main sectors of the insurance industry encompassing numerous types of insurance, most of which cover the financial consequences of damage to one's own property or legal liability to others Life-health insurance one of the two main sectors of the insurance industry encompassing numerous types of insurance that cover the financial Stock insurer an insurer that is owned by its stockholders and formed as a corporation for the purpose of earning a profit for the stockholders Mutual insurer an insurer that is owned by its policyholders and formed as a corporation for the purpose of providing insurance to them Surplus-lines insurer a non-admitted insurer that is eligible to insure risks that have been exported by a surplus lines licensee in accordance with a surplus lines law Reinsurance the transfer of insurance risk from one insurer to another through a contractual agreement under which one insurer (the reinsurer) agrees, in return for a reinsurance premium, to indemnify another insurer (the primary insurer) for some or all of the financial consequences of certain loss exposures covered by the primary's insurance policies Pure risk a chance of loss or no loss, but no chance of gain Speculative risk a chance of loss, no loss, or gain Solvency the ability of an insurer to meet its financial obligations as they become due, even those resulting from insured losses that may be claimed several years in the future Income statement the financial statement that reports an organization's profit or loss for a specific period by comparing the revenues generated with the expenses incurred to produce those revenues Earned premiums the portion of the written premiums that apply to the part of the policy period that has already occurred Underwriting income income an insurer earns from premiums paid by policyholders minus incurred losses and underwriting expenses